Pension Schemes Bill (HL Bill 79)

the scheme is to be treated for the purposes of this section and
sections 38A to 42 as two separate schemes, one relating to the
collective benefits and the other relating to the other benefits.”

28 (1) Section 43 (financial support directions) is amended as follows.

(2) 5For subsection (1) substitute—

“(1) This section applies in relation to a pension scheme that is—

(a) an occupational defined benefits scheme,

(b) an occupational shared risk scheme, or

(c) an occupational defined contributions scheme,

10unless subsection (1A) provides for the scheme to be exempt.

(1A) A scheme is exempt from this section if it is—

(a) a scheme under which all the benefits that may be provided
are money purchase benefits,

(b) a scheme under which all the benefits that may be provided
15are collective benefits,

(c) a scheme under which all the benefits that may be provided
are money purchase benefits or collective benefits, or

(d) a prescribed scheme or a scheme of a prescribed description.

(1B) Where—

(a) 20some of the benefits that may be provided under a scheme
are collective benefits and some are not, and

(b) the scheme does not fall within paragraph (c) or (d) of
subsection (1A),

the scheme is to be treated for the purposes of this section and
25sections 43A to 51 as two separate schemes, one relating to the
collective benefits and the other relating to the other benefits.”

(3) In subsection (2), for “such a scheme” substitute “a scheme to which this
section applies”.

29 In section 52 (restoration orders where transactions at an undervalue), for
30subsection (1) substitute—

“(1) This section applies in relation to a pension scheme that is—

(a) an occupational defined benefits scheme,

(b) an occupational shared risk scheme, or

(c) an occupational defined contributions scheme,

35unless subsection (1A) provides for the scheme to be exempt.

(1A) A scheme is exempt from this section if it is—

(a) a scheme under which all the benefits that may be provided
are money purchase benefits,

(b) a scheme under which all the benefits that may be provided
40are collective benefits,

(c) a scheme under which all the benefits that may be provided
are money purchase benefits or collective benefits, or

(d) a prescribed scheme or a scheme of a prescribed description.

(1B) Where—

(a) some of the benefits that may be provided under a scheme
are collective benefits and some are not, and

(b) the scheme does not fall within paragraph (c) or (d) of
subsection (1A),

5the scheme is to be treated for the purposes of this section and
sections 53 to 56 as two separate schemes, one relating to the
collective benefits and the other relating to the other benefits.”

30 (1) Section 90 (codes of practice) is amended as follows.

(2) In subsection (2)(i), for “money purchase schemes” substitute “certain
10schemes”.

(3) In subsection (6), in the definition of “the pensions legislation”—

(a) omit the “or” at the end of paragraph (c);

(b) after paragraph (d) insert—

“(e) Schedule 18 to the Pensions Act 2014, or

(f) 15the Pension Schemes Act 2015.”

31 In section 126 (schemes eligible for pension protection), for subsection (1)
substitute—

“(1) Subject to the following provisions of this section, in this Part
references to an “eligible scheme” are to a pension scheme that is—

(a) 20an occupational defined benefits scheme,

(b) an occupational shared risk scheme, or

(c) an occupational defined contributions scheme.

(1A) A scheme is not an eligible scheme if it is—

(a) a scheme under which all the benefits that may be provided
25are money purchase benefits,

(b) a scheme under which all the benefits that may be provided
are collective benefits,

(c) a scheme under which all the benefits that may be provided
are money purchase benefits or collective benefits, or

(d) 30a prescribed scheme or a scheme of a prescribed description.

(1B) Where—

(a) some of the benefits that may be provided under a scheme
are collective benefits and some are not, and

(b) the scheme does not fall within paragraph (c) or (d) of
35subsection (1A),

the scheme is to be treated for the purposes of this Part as two
separate schemes, one relating to the collective benefits and the other
relating to the other benefits.”

32 For section 221 (application of scheme funding rules) substitute—

“221 40Pension schemes to which this Part applies

(1) The provisions of this Part apply to a pension scheme that is—

(a) an occupational defined benefits scheme,

(b) an occupational shared risk scheme, or

(c) an occupational defined contributions scheme,

45unless subsection (2) provides for the scheme to be exempt.

(2) A scheme is exempt from this Part if it is—

(a) a scheme under which all the benefits that may be provided
are money purchase benefits,

(b) a scheme under which all the benefits that may be provided
5are collective benefits,

(c) a scheme under which all the benefits that may be provided
are money purchase benefits or collective benefits, or

(d) a prescribed scheme or a scheme of a prescribed description.

(3) Where—

(a) 10some of the benefits that may be provided under a scheme
are collective benefits and some are not, and

(b) the scheme does not fall within paragraph (c) or (d) of
subsection (2),

the scheme is to be treated for the purposes of this Part as two
15separate schemes, one relating to the collective benefits and the other
relating to the other benefits.

(4) Regulations under subsection (2)(d) may provide for exemptions
from all or any of the provisions of this Part, but for the purposes of
subsection (3)(b) a scheme falls within subsection (2)(d) only if it is
20exempt from all of the provisions of this Part.”

33 In section 254 (representative of non-European scheme to be treated as
trustee), in subsection (3)—

(a) omit the “or” at the end of paragraph (c);

(b) after paragraph (d) insert “, or

(e) 25the Pension Schemes Act 2015.”

34 In section 258 (pension protection on transfer of employment: form of
protection), in subsection (2)—

(a) in paragraph (b), for “money purchase scheme” substitute “scheme
under which all the benefits that may be provided are money
30purchase benefits”;

(b) in paragraph (c), for “money purchase scheme” substitute “scheme
under which all the benefits that may be provided are money
purchase benefits”.

35 In section 286 (financial assistance scheme for members of certain pension
35schemes), in subsection (2), for sub-paragraph (i) of paragraph (a) of the
definition of “qualifying pension scheme” (but not the “or” at the end)
substitute—

“(i) a scheme under which all the benefits that may be
provided are money purchase benefits,”.

36 40In section 291 (duty of trustees or managers to act consistently with law of
host member state), in subsection (4)—

(a) omit the “or” at the end of paragraph (c);

(b) after paragraph (d) insert “, or

(e) the Pension Schemes Act 2015.”

37 45In section 307 (modification of Pensions Act 2004 in relation to certain
categories of schemes), in subsection (4), for paragraph (a) of the definition

of “hybrid scheme” (but not the “but” at the end) substitute—

“(a) which is not a scheme under which all the benefits that may
be provided are money purchase benefits,”.

38 (1) Section 318 (interpretation) is amended as follows.

(2) 5In subsection (1)—

(a) at the appropriate places insert—

• ““collective benefit” has the meaning given by section 8
  of the Pension Schemes Act 2015;”

• ““defined benefits scheme” has the meaning given by
  10section 2 of the Pension Schemes Act 2015;”

• ““defined contributions scheme” has the meaning given
  by section 4 of the Pension Schemes Act 2015;”

• ““occupational”, in relation to a defined benefits
  scheme, shared risk scheme or defined contributions
  15scheme, means an occupational pension scheme of
  that description;”

• ““shared risk scheme” has the meaning given by section
  3 of the Pension Schemes Act 2015;”;

(b) omit the definition of “money purchase scheme”.

(3) 20In subsection (3)—

(a) in paragraph (a), after sub-paragraph (vii) insert—

“(viii) regulations made under Part 2 of the Pension
Schemes Act 2015;”;

(b) in paragraph (b), after sub-paragraph (v) insert—

“(vi) 25regulations made under section 34 of the Pension
Schemes Act 2015.”

Pensions Act 2008 (c. 30)2008 (c. 30)

39 The Pensions Act 2008 is amended as follows.

40 (1) Section 20 (quality requirement: UK money purchase schemes) is amended
30as follows.

(2) In subsection (1), for “A money purchase scheme” substitute “An
occupational defined contributions scheme”.

(3) In the heading, for “money purchase schemes” substitute “occupational
defined contributions schemes”.

41 35In section 21 (quality requirement: UK defined benefits schemes) for “A
defined benefits scheme” substitute “An occupational defined benefits
scheme”.

42 In section 23A (alternative quality requirements for UK defined benefits
schemes), in subsection (1), for “a defined benefits scheme” substitute “an
40occupational defined benefits scheme”.

43 (1) Section 24 (quality requirement: UK hybrid schemes) is amended as follows.

(2) In subsection (1)—

(a) for “A hybrid scheme” substitute “A shared risk scheme”;

(b) in paragraph (a), for “a money purchase scheme” substitute “an
occupational defined contributions scheme”;

(c) in paragraph (b), for “a defined benefits scheme” substitute “an
occupational defined benefits scheme”;

(d) 5after paragraph (b) insert—

“(c) the requirements under section 26 for a personal
pension scheme that is a defined contributions
scheme, subject to any prescribed modifications.”

(3) In subsection (2), for “hybrid scheme” substitute “shared risk scheme”.

(4) 10In the heading, for “hybrid schemes” substitute “shared risk schemes”.

44 (1) Section 26 (quality requirement: UK personal pension schemes) is amended
as follows.

(2) In subsection (1), after “personal pension scheme” insert “that is a defined
contributions scheme”.

(3) 15Omit subsection (3) (requirement for all benefits to be money purchase
benefits).

(4) In subsection (4), for “second condition” substitute “first condition”.

(5) In subsection (6), for “third condition” substitute “second condition”.

(6) In subsection (7), for “fourth condition” substitute “third condition”.

45 (1) 20Section 28 (certification that quality requirement or alternative requirement
is satisfied) is amended as follows.

(2) In subsection (3)—

(a) in paragraph (a), for “a money purchase scheme” substitute “an
occupational defined contributions scheme”;

(b) 25in paragraph (b), after “a personal pension scheme” insert “that is a
defined contributions scheme”;

(c) for paragraph (c) substitute—

“(c) a shared risk scheme, to the extent that requirements
within section 24(1)(a) or (c) apply.”

(3) 30In subsection (3A)—

(a) for paragraph (a) substitute—

“(a) an occupational defined contributions scheme that is
within section 18(b);”

(b) for paragraph (c) substitute—

“(c) 35an occupational shared risk scheme that is within
section 18(b), to the extent prescribed;”.

(4) In subsection (3B), for “a defined benefits scheme” substitute “an
occupational defined benefits scheme”.

46 For the heading to section 29 substitute “Transitional periods for certain
40schemes”.

47 (1) Section 30 (transitional period for defined benefits and hybrid schemes) is
amended as follows.

(2) In subsection (1), for “hybrid schemes” substitute “shared risk schemes”.

(3) In subsection (2)(b) and (c), for “a defined benefits scheme or a defined
benefits member of a hybrid scheme” substitute “an occupational defined
benefits scheme or a defined benefits member of a shared risk scheme”.

(4) In subsection (3)—

(a) 5in the opening words, for “hybrid schemes” substitute “shared risk
schemes”;

(b) in the substituted subsection (2), for paragraphs (a) and (b)
substitute—

“(a) an active member, with effect from the end of the
10transitional period for defined benefits and shared
risk schemes, of an automatic enrolment scheme
which is an occupational defined benefits scheme, or

(b) a defined benefits member, with effect from the end
of that period, of an automatic enrolment scheme
15which is a shared risk scheme.”

(5) In subsection (4), for “hybrid schemes” substitute “shared risk schemes”.

(6) In subsection (5)—

(a) in the substituted subsection (2)(a), for “a defined benefits scheme”
substitute “an occupational defined benefits scheme”;

(b) 20in the substituted subsection (2)(a), for “hybrid scheme” substitute
“shared risk scheme”;

(c) in the substituted subsection (2)(aa), for “hybrid scheme” substitute
“shared risk scheme”;

(d) in the substituted subsection (2), for paragraph (b) substitute—

“(b) 25becomes an active member, with effect from the
automatic enrolment date, of an automatic enrolment
scheme which is—

(i) a personal pension scheme other than a
shared risk scheme, or

(ii) 30an occupational pension scheme under which
all the benefits that may be provided are
money purchase benefits or collective
benefits;”;

(e) in the substituted subsection (2)(c), for “hybrid scheme” substitute
35“shared risk scheme”;

(f) in the substituted subsection (2)(d), for “a defined benefits scheme”
substitute “an occupational defined benefits scheme”;

(g) in the substituted subsection (2)(e), for “hybrid scheme” substitute
“shared risk scheme”.

(7) 40In subsections (8) and (9), for “hybrid schemes” substitute “shared risk
schemes”.

(8) In subsection (10)(a) and (b), for “hybrid scheme” substitute “shared risk
scheme”.

(9) In subsection (11)—

(a) 45in paragraph (a), for “a defined benefits scheme” substitute “an
occupational defined benefits scheme”;

(b) in paragraph (b), for “hybrid scheme” substitute “shared risk
scheme”.

(10) In the heading, for “hybrid schemes” substitute “shared risk schemes”.

48 In section 35 (compliance notices), in subsection (5), for “a defined benefits
scheme or a hybrid scheme” substitute “an occupational defined benefits
scheme or a shared risk scheme”.

49 5In section 38 (calculation and payment of contributions), in subsection (2)(e),
for “a money purchase scheme, a hybrid scheme or a personal pension
scheme” substitute “a defined contributions scheme or a shared risk
scheme”.

50 (1) Section 99 (interpretation) is amended as follows.

(2) 10For the definition of “defined benefits scheme” substitute—

• ““defined benefits scheme” has the meaning given by section 2
  of the Pension Schemes Act 2015;”.

(3) At the appropriate places insert—

• ““collective benefit” has the meaning given by section 8 of the
  15Pension Schemes Act 2015;”

• ““defined contributions scheme” has the meaning given by
  section 4 of the Pension Schemes Act 2015;”

• ““occupational”, in relation to a defined benefits scheme, shared
  risk scheme or defined contributions scheme, means an
  20occupational pension scheme of that description;”

• ““shared risk scheme” has the meaning given by section 3 of the
  Pension Schemes Act 2015;”.

(4) Omit the following definitions—

• “defined benefits”;

• 25“hybrid scheme”;

• “money purchase scheme”.

Pensions Act 2014 (c. 19)2014 (c. 19)

51 (1) Schedule 17 to the Pensions Act 2014 (automatic transfer of pension benefits
etc) is amended as follows.

(2) 30In paragraph 1(2)(a) and (5)(a), for “money purchase scheme” substitute
“scheme under which all the benefits that may be provided are money
purchase benefits”.

(3) In paragraph 15(1) omit the definition of “money purchase scheme”.

Section 47

SCHEDULE 3 35Pensions guidance

1 The Financial Services and Markets Act 2000 is amended as follows.

2 After section 333 insert—

“Part 20A

Pensions guidance

333A Introduction and definitions

(1) This Part is about the giving of pensions guidance.

(2) “Pensions guidance” means guidance given for the purpose of
5helping a member of a pension scheme, or a survivor of a member of
a pension scheme, to make decisions about what to do with the
flexible benefits that may be provided to the member or survivor.

(3) In this Part—

• “flexible benefit” has the meaning given by section 74 of the
  10Pension Schemes Act 2015;

• “pensions guidance” has the meaning given by subsection (2);

• “pension scheme” has the meaning given by section 1(5) of the
  Pension Schemes Act 1993;

• “survivor” has the meaning given by section 76 of the Pension
  15Schemes Act 2015.

Giving of pensions guidance

333B Treasury’s role in relation to pensions guidance

(1) The Treasury must take such steps as they consider appropriate to
ensure that people have access to pensions guidance.

(2) 20The Treasury may—

(a) seek to increase awareness of the availability of the guidance;

(b) undertake or commission research relating to the giving of
the guidance.

333C Giving of pensions guidance

(1) 25The bodies listed in subsection (2) are to give pensions guidance in
accordance with arrangements made with the Treasury.

(2) Those bodies are—

(a) the Pensions Advisory Service Limited;

(b) the National Association of Citizens Advice Bureaux;

(c) 30the Scottish Association of Citizens Advice Bureaux;

(d) the Northern Ireland Association of Citizens Advice
Bureaux.

(3) The bodies listed in subsection (2) may give pensions guidance by
arranging for it to be given by another person (including another
35listed body).

(4) The National Association of Citizens Advice Bureaux, the Scottish
Association of Citizens Advice Bureaux and the Northern Ireland
Association of Citizens Advice Bureaux may jointly carry out their
functions of giving pensions guidance.

(5) The Treasury may by regulations repeal one or more of paragraphs
(a) to (d) of subsection (2).

(6) Regulations under subsection (5) may make consequential
amendments of this Act.

333D 5Financial assistance to bodies involved in giving pensions guidance

(1) The Treasury may make grants or loans or give any other form of
financial assistance to—

(a) the Pensions Advisory Service Limited;

(b) the Northern Ireland Association of Citizens Advice
10Bureaux.

(For the power to make grants to the National Association of Citizens
Advice Bureaux and the Scottish Association of Citizens Advice
Bureaux see section 40A of the Consumers, Estate Agents and
Redress Act 2007.)

(2) 15Any grant, loan or other form of financial assistance under
subsection (1)—

(a) is to be made or given for the purpose of enabling the body to
carry out its functions under section 333C(1), and

(b) may be made or given subject to such other terms as the
20Treasury consider appropriate.

Designation of guidance providers

333E Designation of providers of pensions guidance

(1) In this Part “designated guidance provider” means—

(a) the Pensions Advisory Service Limited,

(b) 25the National Association of Citizens Advice Bureaux,

(c) the Scottish Association of Citizens Advice Bureaux,

(d) the Northern Ireland Association of Citizens Advice
Bureaux, or

(e) a person designated by the Treasury as someone who must,
30in giving pensions guidance, comply with standards set by
the FCA under section 333H.

(2) Before designating a person under subsection (1)(e), the Treasury
must—

(a) consult the FCA,

(b) 35notify the person to be designated, and

(c) consider any representations made.

(3) The Treasury may revoke a designation under subsection (1)(e).

(4) The Treasury must give notice in writing of a designation under
subsection (1)(e) or the revocation of a designation under subsection
40(3) to the person designated or (as the case may be) the person whose
designation has been revoked.

(5) The Treasury must send a copy of a notice given under subsection (4)
to—

(a) all other designated guidance providers, and

(b) the FCA.

(6) The Treasury must from time to time publish, in such manner as they
consider appropriate, a list of the persons who are designated under
subsection (1)(e).

5Co-operation and information sharing

333F Co-operation and information sharing

(1) The following must co-operate with one another in matters relating
to the giving of pensions guidance—

(a) each designated guidance provider;

(b) 10the Treasury.

(2) Designated guidance providers and the Treasury may share
information for the purposes of subsection (1).

False claims when giving pensions guidance

333G Offence of falsely claiming to be giving pensions guidance under
15Treasury arrangements

(1) It is an offence for a person who is not giving pensions guidance
under arrangements made with the Treasury—

(a) to describe himself (in whatever terms) as a person who is
doing so, or

(b) 20to behave, or otherwise hold himself out, in a manner which
indicates (or which is reasonably likely to be understood as
indicating) that he is doing so.

(2) For the purposes of subsection (1), pensions guidance given by a
designated guidance provider is given under arrangements made
25with the Treasury.

(3) In proceedings for an offence under this section it is a defence for the
accused to show that the accused took all reasonable precautions and
exercised all due diligence to avoid committing the offence.

(4) A person guilty of an offence under this section is liable on summary
30conviction—

(a) in England and Wales, to imprisonment for a term not
exceeding 51 weeks or a fine, or both;

(b) in Scotland, to imprisonment for a term not exceeding 12
months or a fine not exceeding level 5 on the standard scale,
35or both;

(c) in Northern Ireland, to imprisonment for a term not
exceeding 6 months or a fine not exceeding level 5 on the
standard scale, or both.

(5) In relation to an offence committed before section 281(5) of the
40Criminal Justice Act 2003 comes into force, the reference in
subsection (4)(a) to 51 weeks is to be read as a reference to 6 months.

(6) In relation to an offence committed before section 85(1) of the Legal
Aid, Sentencing and Punishment of Offenders Act 2012 comes into